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Reference is made to the stock exchange announcement of Friday 8 March 2019. Eidsiva Energi and Hafslund E-CO?s boards of directors have now reached an agreement on terms of trade in the draft agreement on the merger of the companies.
Eidsiva Energi and Hafslund E-CO's boards of directors have taken a major step forward and have approved a draft agreement to merge the two companies, as well as the principles underpinning the swap of assets between them. The negotiated text of the draft agreement is in line with the Letter of Intent that the parties signed in November 2018. It will be put to the companies' owners during the second quarter 2019.
2018 was a record year for E-CO Energi, which posted an operating profit of NOK 3,669 million. This represents a year-on-year increase of NOK 1,432 million. The improved performance is primarily attributable to higher electricity prices and increased power production.
E-CO Energi earned a consolidated net profit in the first half of 2018 (H1) of MNOK 595, up MNOK 168 from H1 2017. The improvement in performance must generally be seen in the light of higher selling prices and the acquisition of Hafslund Produksjon in August 2017. Adjusted for unrealised results on price hedging contracts the net profit was MNOK 796, an increase of MNOK 418 from H1 last year.
The Hafslund E-CO group was established 4 July this year. The newly appointed Board og directors appointed Finn Bjørn Ruyter as Chief Excecutive Officer (CEO). The Corporate management has now been appointed.
By merging Norway's second largest electricity generator E-CO Energi and largest power grid operator Hafslund Nett, the City of Oslo has created Norway?s leading integrated power group.
The City of Oslo has promoted a proposal to combine the ownership of Hafslund AS and E-CO Energi Holding AS under a new joint parent company that will be 100% owned by the City of Oslo. The proposal was approved by the Oslo City Council on 20 June 2018.
2017 was a very good year for the E-CO Energi Group. Smooth operations, high production availability, successful production management and higher actual power prices, as well as the acquisition of Hafslund Produksjon, contributed to a net profit for the year of MNOK 1 038. Through the acquisition of Hafslund's hydropower production activities, E-CO Energi strengthened its position as Norway's second largest hydropower producer, increasing its mean production to some 14 TWh. The Board of Directors proposes a dividend of MNOK 650.
The City of Oslo has promoted a proposal to combine the ownership of Hafslund AS and E-CO Energi Holding AS under a new joint parent company that will be 100% owned by the City of Oslo. The combined business becomes a significant player in the Norwegian energy industry as Norway's second largest power producer with 13 TWh renewable hydro power production, and Norway's largest grid company with approximately 710,000 customers.
As from 3 January 2018, Morten J. Hansen will take over as Acting Chief Financial Officer (CFO) at E-CO Energi AS, succeeding Stine Rolstad Brenna.
E-CO Energi earned a consolidated net profit of MNOK 332, up MNOK 39 from H1 2016. Operating revenues climbed by MNOK 59, as higher sales prices more than compensated for lower power production. E-CO Energi concluded an agreement for the acquisition of 90 per cent of the shares in Hafslund once business activities other than hydropower production had been demerged. Such an acquisition will boost E-CO Energi's power production from 10 TWh to approximately 13 TWh.
In connection with the purchase of the shares in Hafslund's hydropower production, E-CO Energi Holding AS raised new loans valued at NOK 2.8 billion on the US capital market for private placements.
Today, E-CO Energi acquired 90 per cent of the shares in Hafslund ASA. All activities other than hydropower production were demerged from Hafslund ASA. The acquisition entails a strengthening of E-CO Energi's position as Norway's second largest hydropower producer with a mean production of nearly 13 TWh.
Press release 03/17
Oslo kommune (the City of Oslo) has today announced an outstanding reorganisation of its ownership in the energy sector. As part of this E-CO Energi Holding AS will acquire 90 per cent of the shares in Hafslund ASA after the separation of other business than production of hydropower from this company. Such a take-over means that E-CO Energi's power production will climb from 10 to approximately 13 TWh.
Press release 01/17
E-CO Energi earned a net profit of MNOK 590 in 2016, compared with MNOK 533 the year before. The improvement in performance is mainly ascribable to higher power prices. The Board of Directors proposes a dividend of MNOK 610.
The net YTD profit after tax was MNOK 256, down MNOK 113 year-on-year. The decline is due to lower contributions from price hedging. Higher power prices towards the end of the quarter and after end-quarter herald better prospects for the net profit for 2016.
Press release 04/16
The profit after tax came to MNOK 293, down MNOK 57 from H1 2015. The decline from last year is ascribable to lower actual selling prices. Higher power production partially offset the decline in selling prices.
On 7th July 2016, E-CO Energi Holding AS ("E-CO Energi" or the "Company") entered into a NOK 1,500,000,000 multi-currency revolving credit facility (the "Facility"). The Facility has a tenor of 5 years including two one-year extension options.
Press release 02/16
E-CO reported a profit after tax of MNOK 289 in Q1 2016, compared with MNOK 305 in Q1 2015. High power production largely offset low power prices. Good production management helped the Group obtain a selling price was 11 per cent higher than the area price.
Press release 01/16
E-CO Energi turned in a satisfactory performance for 2015, given the low power prices that prevail. E-CO Energi's operating revenues totalled MNOK 2 511, compared with MNOK 2 863 in 2014. Successful hedging and good production planning helped ensure the Group's selling price was 34 per cent higher than the spot price. The net profit for the year was MNOK 533, compared with MNOK 713 in 2014. The Board of Directors proposes a dividend of MNOK 685. The Group expects lower profits in future in the light of the forward prices for 2016 and later.
Press release 06/15
E-CO Energi reported a net YTD profit after tax of MNOK 369, down MNOK 34 year-on-year. The decline is ascribable to lower selling prices. The Group's hedging was successful as the actual selling price has been 44 per cent higher than the area price thus far this year.
Press release 05/15
The profit after tax came to MNOK 350, up MNOK 51 from H1 2014. The increase is due to higher production. As a result of hedging, the actual selling price was 27 per cent higher than the area price in H1.
Press release 04/15
E-CO reported a profit after tax of MNOK 305 in Q1 2015, compared with MNOK 285 in Q1 2014. The actual selling price was lower than last year, but a larger production volume more than offset the decline in prices. Hedging had a positive effect, entailing that the selling price was 13 per cent higher than the area price in southern Norway.
E-CO Energi earned satisfactory results in 2014. Consolidated operating revenues totalled MNOK 2 863, compared with MNOK 3 228 in 2013. The average selling price was 0.271 NOK/kWh, compared with 0.323 NOK/kWh in 2013. The net profit for the year was MNOK 713, compared with MNOK 876 last year. The Board of Directors proposes a dividend of MNOK 740.
Press release 8/14
The owners of Norsk Grønnkraft AS ("Norsk Grønnkraft" or the "Company") have entered into an agreement to sell the Company to Aquila Capital ("Aquila").
Press release 06/14
E-CO Energi earned an H1 profit after tax of MNOK 299 in 2014, compared with MNOK 504 last year. The decline is largely ascribable to lower prices. Power production was 100 GWh lower than in H1 2013.
Press release 05/14
E-CO reported a profit after tax of MNOK 285 in Q1 2014, as against MNOK 401 a year ago. The decline is ascribable to lower prices and lower production. Hedging entailed that the actual selling price was 18 per cent higher than the system price.
Press release 02/14
2013 was yet another good year of operations for E-CO Energi, as both operating revenues and earnings before tax were on a par with 2012. Successful hedging, good production planning and operations that maintained high power plant availability contributed to E-CO Energi's strong performance. The Group's reservoirs were at normal levels early in the year and, despite dry, cold late winter months, the spring brought abundant precipitation and the rest of the year was normal. Production ended at 10.0 TWh, compared with 10.8 TWh in 2012. Two new power plants, Embretsfoss 4 and Rendalen 2, were commissioned in 2013. The Board of Directors proposes a dividend of MNOK 750 for 2013.
Telephone: +47 24 11 65 91
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